Shiba Inu's lead developer, Shytoshi Kusama, addressed questions regarding the ambitious goal of burning 99% of the circulating SHIB token supply. Kusama initially interacted with the community by inviting questions for his podcast, stating, "What topic or question do you want to hear the answer to on my podcast? #shyspeaks."
Burning 99% of Shiba Inu tokens 'is achievable'
This call to action has set the stage for further discussions on potential token burn strategies. Fang Zhang, CFO at LSP Finance, directly questioned the feasibility and strategic plan behind such a large-scale burn: "Please provide the timeline and roadmap for burning 99% of the circulating Shib Token."
In response to Zhang's question, Kusama provided an explanation of the challenges and considerations involved in burning 99% of SHIB tokens. He acknowledged the improbability in the history of such an effort, noting that, “Burning 99% of Shib seemed impossible just a few years ago, but with many projects coming together to undertake this monumental task, it is indeed achievable.”
Kusama outlined the necessary conditions for this outcome, emphasizing the adoption of the Shib technology stack by many projects, particularly large-scale projects, to facilitate the burning. "More and more projects or some super large projects must adopt the Shib technology stack," SHIB's lead developer stated.
Kusama highlighted several significant obstacles to achieving the burn goal. He explained that if the burn process starts to accelerate, it could push SHIB's price up as investors anticipate a surge, making the burn more expensive and thus slowing the process. Kusama stated: "Assuming everything starts to skyrocket to the point of a massive burn, people will buy because the price will skyrocket. In this case, burning Shib will become more costly, slowing down the burn process."
Additionally, he emphasized that the strategic intent behind the burn is as important as the actual burning process, saying: “What matters is not the burning, but the intent.”
Furthermore, Kusama pointed out that burning tokens is not the only path to SHIB's success. He clarified that developing utility for the memecoin is equally important, noting that, “Ultimately, burning is not the only way for Shib to win. If I say, oh, I estimate, it will take ANY TIME, not short enough for the scammers. So, we look for other ways to provide utility for the memecoin and ensure that we reach a point through widespread distribution that people no longer want to burn tokens.”
He emphasized the importance of enhancing SHIB's utility through mechanisms such as staking and developing new use cases for related tokens like BONE, LEASH, and Treat.
The proposed burning of 99% of SHIB's total supply would create extreme scarcity. If demand remains steady or increases, the decreased supply could lead to a significant increase in the value of each remaining SHIB token. This change has the potential to elevate SHIB from its current status as a low-cost meme token to a more valuable asset.
However, Kusama clarified that this burning will be a gradual process, driven by the adoption and integration of SHIB technology into various projects that may take years, rather than an immediate reduction.
As of the time the press reported, SHIB is trying to break the Fibonacci retracement level of 0.5 at $0.00002823. This technical level stems from the high of March 5th at $0.00004567 and the local low observed on August 5th at $0.00001067. In the short term, a successful breakout above the Fib 0.5 level could pave the way towards the Fib 0.618 target at $0.00003235.
